No two divorce cases are exactly the same, but commonalities almost always exist. Some common challenges in divorce cases are spousal support, property division, and child custody.
Networth Divorces presents their own issues that are not commonly found in most divorce cases.
What exactly is a High-Net-Worth Individual? We’ll keep it simple here and define it as a person with assets valued at $1,000,000 or more. These individuals may have more money, but the reasons for dissolution tend to be the same as in any other divorce case.
The top three reasons for divorce are infidelity, disagreements about money, and lack of communication. In any divorce, it is always advised to consult with a Divorce Attorney. Whether the divorce is contested or uncontested for those with High-Net-Worth Assets, we highly advise you to speak with someone to ensure nothing is overlooked.
Divorce Rate
It’s commonly known that almost half of all marriages end in divorce, but how does that statistic change based on household income?
The number one issue couples fight over just so happens to be the topic many avoid discussing: money. According to research, money is the leading cause of stress in a relationship and is the second leading cause of divorce, behind infidelity. There’s a direct correlation between money problems and divorce.
You’d be wrong if you thought more money would mean fewer problems in a marriage. The statistics show that this is not the case. Based on the Census Bureau, divorce rates increase once an average household income reaches over $100k.
This underlying economic disparity can become an issue for many couples. One person is a high-income earner, and the spouse is unemployed. Travel and long work hours are often required for the high-income earner, which can make for a lot of time apart for the couple. It’s important to note that these can be issues for anyone in a marriage, but as the judicious modern-day sage, the Notorious B.I.G., once wisely proclaimed: More Money, More Problems.
Asset Challenges
Your divorce proceedings and the court’s justice will have the final say on how your assets are divided.
High-net-worth individuals tend to have greater assets to divide, which may span different states or countries, making the process more involved for the couple and the attorneys. Understanding your finances and assets before getting a divorce is crucial, as this information may often disappear after the divorce is underway.
It is not uncommon for spouses to try hiding assets during this process. Forensic accountants may be necessary to track down hidden assets and financial holdings. More affluent individuals are also in a better position to contest a divorce over community assets. The complexity of these cases tends to extend longer than the typical divorce. As the case is dragged out, legal representation is oftentimes a smaller portion of the equation in comparison to what the individual has to gain from a ruling in their favor.
When you have more at stake, legal representation is necessary in High Net Worth Divorce cases. Hire a divorce attorney who knows what they are doing and understands what’s at stake for you.
Business Involvement
Divorce gets even more complicated when a business or multiple businesses are involved, and assets from that business are divided into marital property. If a spouse owns a business, a local business evaluator is necessary to perform an evaluation, and in many cases, a forensic accountant is needed. You’ll need to consult these specialists about options when a business is considered marital property. They will help you feel a buyout, co-ownership, or selling off the business. These options will require an appraisal of the company’s assets and holdings.
Divorce can have a huge impact on your business. It can also take a toll on an owner’s focus on running the business. Consulting with an attorney can help give you peace of mind that your business will not be taken advantage of in an already stressful situation.
Alimony, Spousal Support, and Child Support
There may be a legal obligation to support the spouse and children if one spouse is not working or earning significantly less. Temporary orders may be necessary for High Net Worth Individuals to take care of spousal support, living arrangements, and child custody while proceedings occur. Attorney’s fees can also be awarded in temporary orders from an Arizona judge.
Traditionally, these payments are often much more significant than in most divorce cases. Whether temporary or permanent. In High Net Worth divorce cases, when one spouse misrepresents or conceals assets, leaving one spouse at a disadvantage, especially with children involved, happens all too often. Missing these assets can alter the course of a child custody hearing or bias toward the parent with more money if a sizeable monetary gap exists.
Careful evaluation is needed to determine a proper settlement to satisfy all support obligations. An experienced child support lawyer can help you navigate the complexities of a High-Net-Worth divorce case and obtain the fair settlement you and your family deserve.
Hire A Phoenix Divorce Lawyer
The outcome of a divorce can have many consequences that will last a lifetime and those with more have more to lose. Get the fair settlement you deserve from your High Net Worth divorce by hiring the right Phoenix divorce lawyer for the job. Adam Weingart can help you navigate the complexities of divorce with years of experience helping High Net Worth Individuals. Contact us today for a consultation.